Should investors be piling into energy shares amid the chaos?

Violence in Iraq and tensions in eastern Europe are pushing up prices

INVESTORS are eyeing potential gains from the oil and gas industry amid
escalating tensions in the Middle East and Ukraine.

Oil prices jumped to a nine-month high last week, hitting almost $116 before
ending the week at $115.

The surge came as militants in Iraq took over parts of the country and
encroached on oil-producing regions in the northeast.

Natural gas prices in Europe also rallied amid fears of a “gas war” between
Ukraine and Russia. Wholesale prices were 15% higher on Monday than on June
6, when prices fell to a four-year low, after Russia said it would no longer
supply gas to Ukraine unless it received payments upfront.

Tom Marzec-Manser at the commodity analyst ICIS said: “Gas buyers have been
looking to fill their reserves by taking delivery of more of their gas now
in case of further disruptions.” Russia supplies about 15% of European gas
via Ukraine.